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To: BigBull who wrote (58522)9/20/2000 10:38:08 PM
From: ramcc54  Read Replies (2) | Respond to of 116789
 
Have a question about hedging the dollar? Here is some thoughts I will share, with the dollar this strong wouldn’t be smart for foreign companies to buy US products like Aircraft. They place their orders today in dollars; now if the dollar is down say 20% when they need to pay up at delivery they would make out good. For the seller like say Boeing they would need to hedge the dollar to make sure they didn’t loose the profit on the sale because of the decline of the dollar. Here is the root of my question; does the hedging of the dollar all so put pressure on the dollar to bring it down? If the dollar were to drop then we would have instant inflation. I feel with big orders in Aircraft someone is betting the dollar will weaken. With a weak dollar and rising inflation then we could see the rise in gold prices. Wish I understood better the dynamics of hedging?